NEW DELHI: Kishore Biyani- led Future Supply Chain Solutions Ltd (FSC) has sold 40% stake to Singapore-based SSG Capital Management Group for Rs 580 crore at a valuation of Rs 1,450 crore. This will include 14% stake to be acquired from Future Retail Ltd (FRL) and the management team collectively, and 26% from another minority shareholder SKC 1 Ltd (SKC). SKC is part of Fung Capital, the PE investment arm of the families of Victor Fung and William Fung, the controlling shareholders of the Fung Group with businesses in trading, logistics and retailing.
The company said in a statement that the deal would result in proceeds of about Rs 185 crore to FRL and the supply chain arm will enhance Future Retail’s overall business objectives. FRL will continue to a hold major stake of 57.4% in FSC.
FSC registered income from operations stood at Rs 408 crore and earned a net profit of Rs 25 crore in March 31, 2015. FRL currently holds 70.17% equity stake in FSC, with SKC holding 26% and the remaining mainly held by the management.
Bantry Capital of Singapore acted as a sole financial advisor, the company said.
“It is a step towards our stated intent of optimal monetization of some of the investments held by FRL,” said Kishore Biyani, MD, Future Retail, which operates around 401 stores spread over 11.7 million square feet of retail space.